We report on the epitaxial relationship between Ag and the Si(111)7x7 substrate where the wetting layer and the emergence of islands was investigated using in situ x-ray scattering with a combination of grazing incidence diffraction, specular reflectivity and crystal truncation rod measurements. The atomic-scale structure of the wetting layer evolves continuously with coverage until a transition where it ceases to change its structure concomitantly with the appearance of islands. The islands are observed to reside on the Si(111)7x7 and, although the minimum average island height is three atomic layers of face-centered cubic Ag, the average island height depends on the coverage and temperature. The majority of the Ag islands are oriented along the symmetry-equivalent Si crystallographic axes and a minority population of islands are rotated by 15.7 • . A coincidence-site lattice model is used to show that kinetic considerations lead to the observed island orientations.